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Bank of America Stock: Potential Upside

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Analysts maintain a “buy”

Most of the analysts covering Bank of America (BAC) stock continued to recommend a “buy.” Bank of America is expected to benefit from the higher net interest income due to continued growth in loans and deposits. Lower expenses, improved asset quality, and share repurchases are expected to drive Bank of America’s bottom-line growth.

Bank of America has a strong history of beating analysts’ estimates. Meanwhile, the bank has boosted shareholders’ return through dividends and share repurchases. In 2018, Bank of America returned $25.5 billion to its shareholders in the form of dividends ($5.4 billion) and share buybacks ($20.1 billion).

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Ratings and target price

Among the analysts covering the Bank of America stock, 21 recommended a “buy,” while nine recommended a “hold.” Analysts have a target price of $33.09 per share on Bank of America stock, which indicates an upside potential of 15.3% based on its closing price of $28.69 on February 12.

Most of the analysts are also bullish on top US banks’ shares. Growth in lending and deposits, the improving efficiency ratio, and share repurchases are expected to drive the upside. Analysts have a “buy” rating on Citigroup (C), JPMorgan Chase (JPM), and Wells Fargo (WFC).

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